Pursuant to Article 3 of the SFDR, mojo.capital is required to disclose the manner in which sustainability risks (as defined hereafter) are integrated into the investment decision-making process.
A sustainability risk means an environmental, social or governance event or condition that, if it occurs, could cause an actual or potential material negative impact on the value of the investments made by the Alternative Investment Funds (“AIF”) managed by mojo.capital.
Such risks are principally linked to climate-related events resulting from climate change (i.e. physical risks) or to the society’s response to climate change (i.e. transition risks), which may result in unanticipated losses that could affect an investment. Sustainability risks can also affect companies by introducing social risks (e.g. gender gaps, social inequality) and governance risks (e.g. bribery issues, selling practices). Such risks are notably likely to materialize if the companies or funds (and their AIFMs) or any other entity the AIFs would invest in (“Investee”) are not in full compliance with and applicable regulatory and legal requirements. Legal and reputational consequences can be material and the impacts following the occurrence of a sustainability risk may be numerous and vary depending on the specific risk, region and asset class. Such risk could significantly impact the return of the the AIFs managed by the AIFM.
mojo.capital considers such risks in the context of the overall due diligence process and as a result of applying a prudent and good industry practice approach to selecting, making and subsequently monitoring investments to the extent that such risks represent potential or actual material risks and/or opportunities to maximizing the long-term risk-adjusted returns of the AIFs. Notably, as part of its due diligence processes and consistent with good industry practice, mojo.capital generally seeks to confirm (among other things) that investees comply with all applicable laws and regulations including employment, social and environmental laws and regulations.
In addition, mojo.capital seeks to use the governance rights available to it in order to minimize sustainability risks and improve performance of the investments. However, the fact that the AIFs hold minority stakes in investees means that mojo.capital is not always able to influence the decisions that investees take with respect to these risks.
Pursuant to Article 5 of the SFDR, mojo.capital is required to disclose its remuneration policy in relation to the integration of sustainability risks
mojo.capital pays its staff in accordance with all of mojo.capital’s internal risk management framework and internal policies, including those relating to the integration of sustainability risks. In this regard, mojo.capital’s remuneration policy does not encourage risk-taking which is inconsistent with its internal risk limits or with the risk profile of the AIFs that mojo.capital manages.